They were trying to raise funds at a $1B dollar evaluation 3 weeks ago. Wow
Or they were a ponzi scheme all along.
They wouldn't necessarily need to borrow money to do that. The naive play was using something like TERRA to earn 20% and pass through 8% to the depositors. But the spread amount itself should have raised eyebrows. If someone is paying you 20%, you're taking some kind of risk. And the worst kind of risk is risk you don't understand